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IonQ, Inc.

Class Action
  • Active
Investigation
05/03/2022
Initial Lawsuit
05/31/2022
Lawsuit Progression
08/01/2022

Investigation

Were Scorpion Capital’s research report short allegations misleading? Was IonQ misleading about its technology, progress and roadmap for commercialization? The company provided numerous risk statements regarding where it stands, notably in its initial registration statement filed with the U.S. Securities and Exchange Commission (SEC). Scorpion conducted interviews with 25 research interviews including 7 former employees and executives and 11 quantum experts, leading the thesis of the 183 pages report.

These questions might be answered by the company, investors themselves, or by a judge in a court of justice. Until then, we have opened this page for investors to gather facts, findings and track related lawsuits. We invite investors and shareholders to contribute to investigations for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

  • Investigation Date
    05/03/2022
  • Hypothetical Affected Period
    March 30, 2021 to May 2, 2022
  • Hypothetical Transgression
    Securities Violation
Main Event

Short Attack

05/03/2022

Research Report (Short)

Scorpion Capital released a 183 pages research report (disclosing a short position) alleging, among other things, that IonQ’s “machine doesn’t exist and that the announcement was part of an ongoing pattern of fraud that its CEO and co-founders are now trying to cover up.” Comparing IonQ to “Nikola’s shenanigans” the report calls the 32-qubit computer a “brazen hoax” and the company a “scam built on phony statements about nearly all key aspects of the technology and business.”

The report is supported by “25 research interviews including 7 former employees and executives; 11 leading quantum computing experts including seminal names in the field, some who have published papers with IonQ’s founders and are intimately familiar with its technology; and 5 of its key “customers” and partners.“

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$7.15 $7.86 $-0.71 -9.03%
See more on Factual Timeline

Initial Lawsuit

An IonQ, Inc. shareholder filed a securities class action lawsuit on behalf of persons and entities that purchased or otherwise acquired IonQ securities between March 30, 2021 and May 2, 2022, inclusive.

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:

(1) that IonQhad not yet developed a 32-qubit quantum computer;
(2) that the Company’s 11-qubit quantum computer suffered from significant error rates, rendering it useless;
(3) that IonQ’s quantum computer is not sufficiently reliable, so it is not accessible despite being available through major cloud providers;
(4) that a significant portion of IonQ’s revenue was derived from improper round-tripping transactions with related parties; and
(5) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Defendants

  • Company
    IonQ, Inc. fka dMY Technology Group, Inc. III
  • Chief Executive Officer
    Peter Chapman
  • Chief Financial Officer
    Thomas Kramer

Lawsuit progression

  • Docket Number
    8:22-cv-01306
  • Court
    Maryland District Court

The lead plaintiff deadline has passed, we will update this page as the lawsuit progresses

Factual Timeline

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